Instillation of Lava theme is very easy. Its the same method that you follow for installation of other Drupal themes.
Step 1: Download the theme
Download the latest version of Lava theme from project page.
https://drupal.org/project/lava
The download file will be a compressed .zip or .tar.gz file

Step 2: Extract the files
Right click the zip file and extract the zip file.

After extracting the zip file you will get a folder named lava

Step 3: Upload the theme folder
Upload this lava folder to sites/all/themes directory.

Step 4: Enable the theme
Now go to administer > site building > themes
/admin/appearance
Click Enable and set default link below the theme.

Step 5: Perform basic theme settings
After you have enabled the Lava theme, perform few basic settings from domain.com/admin/appearance/settings/lava or by clicking Settings link.
